The Lutheran Community Foundation

One of the simplest ways to make a charitable gift is to designate the LCF as the beneficiary of an IRA, tax sheltered annuity, or 401(k) or 403(b) plan. Beneficiary proceeds directed to charity are not subject to income or estate taxes, typically referred to as “double tax”, providing significant tax advantages to the givers and their families. These assets may also be used to fund a charitable remainder trust at death to benefit a spouse or the family.

When a donor names the LCF as beneficiary of specific assets, he or she enjoys some flexibility and simplicity in giving, including the ability to:

Change this designation throughout life;
Designate all or a portion of the assets to the LCF;
Designate the Foundation as beneficiary without the help of an attorney.

Upon the donor’s death, assets are directed to the charitable fund created by the donor to benefit his/her recommended charities.

Target Audience

• Clients who need the retirement income while living, but wish to benefit charity with any remaining value upon death.
• Clients who want the option to change this designation down the road.
• Charitably-minded clients who have no heirs to benefit from their estates.

Tax and Financial Benefits for Your Clients

• The amount designated to charity is given free of federal estate tax.
• The Foundation receives the specified assets upon the donor’s death, allowing for a potential charitable deduction against estate taxes.
• Save up to 70% of the value of the asset from federal estate and income taxes.

Benefits to you, the Professional Advisor

LCF will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds. (details)

How to Designate the LCF to Receive Beneficiary Proceeds

1. Donor completes a Fund Workbook and send it to LCF.
2. Once LCF receives the Workbook, it drafts a document called a Fund Agreement. This document will be sent to the donor for signature and will be countersigned by the LCF. The purpose of this document is to list the charities the donor wishes to benefit and govern the administration of the donor’s perpetual fund. The donor may change the charitable beneficiaries at any time by revising the Fund Agreement.
3. Donor Includes Foundation on Beneficiary Designation Forms
4. The following language should be used: “Lutheran Community Foundation, a Minnesota nonprofit corporation, to be allocated to [INSERT FUND NAME].”